Solution
Star Ltd. took over the assets of Rs. 6,60,000 and liabilities of Rs. 80,000 of Moon Ltd. for Rs. 6,00,000. Give necessary Journal entries in the books of Star Ltd. assuming that:Case (a): The purchase consideration was payable 10% in cash and the balance in 5,400; 12% Debentures of Rs. 100 each.Case (b): The purchase consideration was payable 10% in cash and the balance in 4,500; 12% Debentures of Rs. 100 each issued at 20% premium.